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2) A multi-plant monopolist faces the inverse demand P=30-Q.The first plant has a marginal cost of MC1=2Q1and the second plant has a marginal cost of
2) A multi-plant monopolist faces the inverse demand P=30-Q.The first plant has a marginal cost of MC1=2Q1and the second plant has a marginal cost of MC2=2Q2.
Illustrate in a Figure the inverse demand, the different marginal costs, the total production, and the plant level production. (Just illustrate the different functions without attaching specific production units for different plants; no calculation required!)
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